Gold ETF Chart Points Skyward

By Chris Vermeulen of TheGoldAndOilGuy.com

NEW YORK (TheStreet) -- Commodities continue to perform well as the U.S. dollar tests the October lows. If we step back and take a look at the weekly charts of the gold, silver, oil and natural gas ETFs, we can get a better feel for what to expect in the coming week.

Trading commodity ETFs can be a profitable experience when done correctly. The first things I always analyze are the longer time-frame charts. This allows me to see past support and resistance levels and determine whether the investment is trending up, down or sideways.

Let's take a look at gold, silver, oil and natural gas.

GLD ETF: Weekly Chart

The weekly trend is crucial for understanding the power behind price movements. We can see that the gold ETF fund, SPDR Gold Shares (GLD), is in a strong uptrend and that price closed at the high on Friday, which is a strong sign. I would expect to see gold continue higher on Monday because of this strong momentum.

We can see that over the past two years, GLD has formed a large cup-and-handle pattern, which is very bullish. A breakout above the handle will trigger investors to buy gold as a long-term investment, and that is what we are seeing now.